Allure Company manufactures and distributes two products, M and XY. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:

Activity	Cost Driver	Amount			M		XY
Production setups	Number of setups	$	69,000		6		14
Material handling	Number of parts		52,000		60		15
Packaging costs	Number of units		215,000		112,000		48,000
		$	336,000

What is the total overhead per unit allocated to Product M using activity-based costing (ABC)?

• $2.10

• $2.57

• $1.90

• $2.52